I'm 19, dropped out of college, and am profiting greatly from wholesaling while acting both more ethical and legally than most agents even are.I'll break it down for you.

Have a strong work ethic, smile at work, be willing to learn, if you simply do that you will be better than most!

But as a buyer... makes no sense to ask the LA to be your agent too...John McNellis essentially says it's not supposed to matter (according to their code of ethics), but human nature is human nature. 

Or could they be bending the rules and putting in contracts on properties that they probably don't even know what it looks like; is that even allowed/ethical/legal?

I am conflicted by what seems to be the ethical thing to do and what is legally in my right.

For example, management not treating tenants in an ethical way (not repairing air conditioning when they were supposed to, or not repairing plumbing or other major issues in a timely manner.)I've also heard some stories of success too, so I say be very cautious.

If you truly want to do wholesaling, I suggest you don't get a real estate license, as it will set you up potentially for some legal issues or at minimum some RE Ethics violations. 

She's investor friendly, and she has a work ethic and business model that is unlike any I've ever seen.

If you choose not to accept Section 8 be consistent and across the board with it because even if it's not a protected class you still have a duty as a landlord to be ethical and consistent with the enforcing of your screening criteria. 

What the ethical wholesaler does is purchase the property.